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Russel Metals Inc (RUS) Fair Value & Analysis

Industrials · CA · Market cap C$3.5B

RM Russel Metals Inc RUS · TO
PriceC$80.96
Fair ValueC$90.86
Upside+12.2%
Quality65/100
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Healthy Growth
Thin margins · 4.0% net margin
Low debt · generates free cash flow
2.69% dividend yield
Ranks above peers (12/15)
Narrow moat 42/100
Evidence: High Range C$52.51 – C$139.88 Share as image

Fair value as of: Jul 11, 2026

From 24 valuation models · updated 29 days ago

Fair value updated Jul 11, 2026, revised from C$50.50 to C$90.86 (+79.9%) since Jun 24, 2026. Share price +27.7% over the past month.

A solid business, screening 12% undervalued on our models.

What matters now

  • The model range is unusually wide (C$52.51 to C$139.88). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Our model range runs from C$52.51 (bear) to C$139.88 (bull), base C$90.86. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 65/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

C$80.96 C$20.55 Fair Value C$90.86 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range C$20.55 – C$80.96 · fair‑value band C$52.51 – C$139.88 · the C$80.96 price screens below the C$90.86 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Russel Metals Inc (RUS) currently trades at C$80.96, while our model-based Fair Value estimate is C$90.86, implying the stock looks roughly 12.2% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Russel Metals Inc generated revenue of C$4.9B at a net margin of 4.0%. Revenue grew 20.9% year over year. It earns a return on equity of 12.0%. Net debt stands at C$369M. Fundamentals as of Jul 11, 2026

Our scenario range runs from C$52.51 (bear case) to C$139.88 (bull case); at C$80.96, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 113% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at 12%, RUS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF C$21.40 C$32.36 C$47.30 80
Residual Income C$25.45 C$28.46 C$45.47 76
Rev-Margin DCF C$29.47 C$50.83 C$75.03 74
All 24 models by family
DCF Models
FCF DCF C$21.02 C$33.39 C$51.34 38
Owner Earnings C$33.16 C$51.69 C$78.57 31
5Y Revenue Exit C$29.47 C$51.00 C$78.53 39
5Y EBITDA Exit C$38.78 C$68.29 C$102.68 41
5Y P/E Exit C$32.82 C$57.23 C$82.70 38
10Y Revenue Exit C$24.88 C$43.45 C$68.38 36
10Y EBITDA Exit C$31.82 C$55.14 C$86.27 37
10Y P/E Exit C$28.11 C$47.66 C$71.47 35
Earnings-Based
Graham-Dodd C$20.90 C$62.76 C$83.16 54
Lynch FV C$13.32 C$19.03 C$24.74 50
PEG = 1.0 C$13.32 C$19.03 C$24.74 46
EPV C$27.37 C$32.21 C$36.40 59
Multiples
P/E Multiple C$48.42 C$64.55 C$80.69 63
P/S Multiple C$39.19 C$52.26 C$65.32 58
P/B Multiple C$39.19 C$52.26 C$65.32 55
EV/EBIT C$52.19 C$70.71 C$89.22 53
EV/EBITDA C$55.64 C$75.30 C$94.96 54
EV/Revenue C$36.29 C$53.28 C$70.27 43
Asset-Based
NCAV (Graham) C$14.47 C$19.39 C$28.94 50
Growth DCF
Growth DCF C$21.40 C$32.36 C$47.30 80
Rev-Margin DCF C$29.47 C$50.83 C$75.03 74
Economic Profit
Residual Income C$25.45 C$28.46 C$45.47 76
ROIC Compounder C$27.37 C$33.92 C$42.65 72
Growth Earnings
Growth-Adj P/E C$39.54 C$56.49 C$73.44 68

Widest divergence: Growth Earnings (C$56.49) versus Earnings-Based (C$19.03). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) C$4.9B
Revenue growth (YoY) +20.9%
Net margin 4.0%
Return on equity 12.0%
Free cash flow C$125M FY2025
P/E ratio 17.9
More key figures
Operating margin 4.4%
EPS (TTM) C$3.56
Dividend yield 2.7%
EPS growth (YoY) +73.3%
Net debt C$369M FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 64 · Market factors (momentum, volatility) 89

Profitability 57
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 62
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Russel Metals Inc. engages in the distribution of steel and other metal products in Canada and the United States. The company operates through Metals Service Centers, Energy Field Stores, and Steel Distribution segments.

Full company description

Russel Metals Inc. engages in the distribution of steel and other metal products in Canada and the United States. The company operates through Metals Service Centers, Energy Field Stores, and Steel Distribution segments. The Metal Service Centers segment operates a network of metals service centers, which provide metal products in various sizes, shapes, and specifications, including carbon hot rolled and cold finished steel, pipe and tubular, stainless steel, aluminum, and other non-ferrous specialty metal products. The Energy Field Stores segment offers specialized products, such as flanges, valves, fittings, and other products to energy industry. The Steel Distributors segment sells steel products comprising carbon steel plate, flat rolled products, beams, channels, and pipes to other steel service centers and equipment manufacturers. Russel Metals Inc. was incorporated in 1929 and is headquartered in Mississauga, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Russel Metals Inc reported revenue of C$4.6B in FY2025 versus C$4.2B in FY2021, a compound +2.5%/yr. Reported net income was C$169M in FY2025, compounding −20.9%/yr from FY2021.

Growth Quality 79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
C$4.6B
Latest YoY
+8.9%
Avg. growth/yr (3Y)
−2.9%
Avg. growth/yr (5Y)
+11.5%
Avg. growth/yr (32Y)
+3.8%
Revenue +2.5%/yr
FY21 C$4.2B
FY22 C$5.1B
FY23 C$4.5B
FY24 C$4.3B
FY25 C$4.6B
Net income −20.9%/yr
FY21 C$432M
FY22 C$372M
FY23 C$267M
FY24 C$161M
FY25 C$169M

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Cite: Fair Value Calculator (2026). "Russel Metals Inc Fair Value". https://www.fairvalue-calculator.com/stock/RUS

Peer Group

Industrial Distribution · 104 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 65 · Top 25%
Fair Value upside +12% · Above median
Return on equity (TTM) 12% · Above median
Return on assets 5% · Above median
Net margin (TTM) 4% · Above median
Operating margin (TTM) 4% · Below median
Revenue growth 21% · Top 25%
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.19× · Lower than median

Valuation Multiples vs Industrial Distribution median · lower = cheaper

P/E (TTM) 17.9× · Cheaper than median
P/B 1.58× · Pricier than median
P/S (TTM) 0.51× · Cheaper than median
P/FCF 20.1× · Pricier than 75% of peers
EV/EBITDA 8.7× · Cheaper than median
PEG 0.53× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 50 · sector 19
FUTURE 100 · sector 19
PAST 48 · sector 35
HEALTH 91 · sector 90
DIVIDEND 54 · sector 30

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
W.W. Grainger, Inc GWW $1,376 $625.61 -55%
Fastenal Company FAST $45.49 $20.64 -55%
Ferguson Enterprises Inc FERG $232.02 $151.92 -35%
WESCO International, Inc WCC $326.71 $213.01 -35%
Watsco, Inc WSO $385.16 $268.10 -30%
Toromont Industries Ltd TIH C$232.22 C$127.90 -45%
Applied Industrial Technologies, Inc AIT $329.35 $191.65 -42%
Finning International Inc FTT C$102.50 C$76.38 -25%
Addtech AB ADDTB kr 329.20 kr 156.35 -53%
Core & Main, Inc CNM $44.66 $49.47 +11%

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Frequently asked questions

Is Russel Metals Inc (RUS) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of C$90.86 versus a price of C$80.96, about +12% (undervalued).
What is the fair value of RUS?
Our model-based fair value for Russel Metals Inc is C$90.86 (as of Jul 11, 2026), built from audited fundamentals. The current price is C$80.96.
What is the quality score of RUS?
Russel Metals Inc has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Russel Metals Inc (RUS)?
Russel Metals Inc reported trailing-twelve-month revenue of about C$4.9B (latest available figure, as of Jul 11, 2026).
What is the net profit margin of RUS?
The net profit margin of Russel Metals Inc is about 4.0%, meaning it keeps roughly 4.0% of revenue as net income. Based on the latest reported figures.
Does Russel Metals Inc pay a dividend?
Russel Metals Inc currently shows a dividend yield of about 2.69% relative to its recent price (as of Jul 11, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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